Einhorn is a Tesla bear
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Einhorn’s Tesla bashing continues
Einhorn again bashed Tesla in a recent investor letter, writing, “The wheels are falling off — literally.” The letter cited a February 24 incident where a man driving in Florida was killed after his Model S hit a tree and the “front driver-side wheel severed from the wreck.”
Einhorn recalled concerns faced by other companies, including Samsung, which recalled its Galaxy phones after several combusted in 2016. He also highlighted how Tesla was absent from the consortium formed by GM, Ford (F), and Toyota to establish safety rules for developing, testing, and deploying autonomous vehicles.
Tesla’s underperformance this year
As of April 12, Tesla stock had fallen 19.6% year-to-date, significantly underperforming broader markets (SPY) (IVV) and other automakers (GM). Tesla stock fell 16% in the first quarter. Einhorn’s short bet on Tesla did not go his way last year, as the stock outperformed markets (SPY) (DIA) with a ~7% return. Year-to-date, however, the stock has fallen, boosting the fund.
While some of the economic data from China in 2019 has suggested stalling growth, we’ve started to see signs of bottoming out.
Yum! Brands (YUM) is set to report its first-quarter earnings before the market opens on May 1.
Merchant power player NRG Energy (NRG) is slated to report its first-quarter earnings on May 2. According to consensus estimates, NRG will report earnings of $0.56 per share for the quarter, which ended on March 31.
Fortinet (FTNT) is scheduled to announce its first-quarter results on May 2.
AK Steel (AKS) is scheduled to release its first-quarter earnings on April 29 after the markets close. The company is to hold its earnings call on April 30.
Apple (AAPL) is scheduled to release its second quarter of fiscal 2019 results on April 30 after markets close.
Clorox (CLX) stock was trading flat on a year-to-date basis as of April 24, and it has underperformed the broader markets as well as its peers.